It consists of the Revenue Expenditure and Revenue Receipts.
It includes the Capital Receipts and Capital Expenditure.
Off-budget borrowings are loans that are taken not by the Centre directly but by
another public institution which borrows on the directions of the central government.
Such borrowings are used to fulfil the government’s expenditure needs.
Since the liability of the loan is not formally on the Centre, the loan is not included in the national fiscal deficit.
This helps keep the country’s fiscal deficit within acceptable limits.
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